Vallar takes over 75% shares of Bumi Resources Mineral

UK-listed mining firm Vallar Plc announced Friday a major re-organisation through the transfer of 75 per cent of metal mining firm PT Bumi Resources Minerals Tbk (BRM) shares to Vallar and the increase of its ownership in coal mining firm PT Bumi Resources Tbk.

The BRM Proposal represents major progress in the delivery of Vallar's strategy to augment its core focus on coal by adding a portfolio of base metals, iron ore and precious metals assets across multiple geographies, the company said.

The consideration for the BRM Proposal will be in the form of listed convertible bonds to be issued to Bumi Resources for US$2.07 billion with a 2.0% coupon and a ?15.88 initial conversion price.

In addition, Vallar will introduce Bumi plc as the new premium listed parent company of Vallar by the end of June 2011 following a review of the accounting treatment of exploration and development costs incurred in 2007 and 2008 in relation to certain assets now owned by BRM as part of the process of finalizing the historic financial information for the premium listing.

The Bumi Resources Step-Up Transaction will be effected through a series of separate transactions with a limited number of Bumi Resources Shareholders whereby Bumi will issue Bumi Voting Ordinary Shares in exchange for Bumi Resources Shares. (godang)